Board president Connie Prado said the board will welcome the conservator, appointed by
the state.

Board president Connie Prado said the board will welcome the conservator, appointed by
the state.

Photo: /Courtesy SSAISD

South San ISD must fix finances, TEA says

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A Texas Education Agency investigation of South San Antonio Independent School District’s 2010 bond program faulted former superintendents and its board for a lack of internal financial controls — and trustees for failing to disclose potential conflicts of interest and to ensure projects went through a competitive bidding process.

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The agency informed the district of its conclusions last week. The report outlined 13 deficiencies and issued more than 20 directives South San must follow, ordering the district to hire an external forensic auditor to further examine financial operations. It also chided the board for failure to work with new administrators.

“We expect the district to comply with the corrective actions set forth in this report without further resistance or unwillingness from the board to adopt effective financial operating policies, procedures, and internal controls uniformly districtwide,” the report states.

It was the second of two critical state reports on the district’s finances. Earlier this year, the agency released a report that found the district did not sufficiently track or document how it managed federal money from 2009 to 2012. It was ordered to pay back about $300,000.

In a statement, Superintendent Abelardo Saavedra said the district is reviewing the latest report and will work with the TEA to resolve the issues.

“Although members of the administration team that managed the bond program are no longer with the district, the current administration has been proactive in its efforts to improve processes and efficiency within the business office,” Saavedra said.

When he became superintendent last year, Saavedra fired the district’s longtime finance director. Several board seats have also changed hands since the bond program was administered.

The TEA began the investigation after complaints about the district’s management of its 2010 bond program funds and allegations that it hadn’t adopted policies to prevent fraud, waste and abuse, according to the report.

It said the agency “strongly encourages the current board of trustees to demonstrate that it can work collaboratively with Dr. Saavedra” to fix the problems.

Trustees will discuss the report at a special meeting today. Board President Connie Prado said she has questions about the report but noted she’s seen improvement in recent years.

“When Dr. Saavedra came in, he made drastic changes having to do with our finances,” she said. “I think it was the finance department that was the whole problem.”

When he was hired last year, Saavedra sought and received a free hand from the South San board to enact finance and personnel changes and reform the district’s central office.

Tension between the superintendent and board members surfaced in a recent meeting and Saavedra last month said he may look into leaving South San over what he said was trustees’ criticism of his character. Prado denies that the relationship between the board and Saavedra is souring.

The Texas Education Agency conducts only a few such investigations per year, agency spokeswoman Debbie Ratcliffe said in an email.

“We are hopeful that the district will comply with the corrective actions outlined in the investigative report. If it does not, state law provides the commissioner with a range of sanctions that he could impose,” which include requiring the superintendent and board president to explain the poor performance at a hearing, conducting an on-site investigation or appointing a conservator or management team.